ecglcd:Investigation into Exchange Activity Not About Money Laundering

 Currently, India’s national financial crime agency, the Enforcement Directorate (ED), is investigating at least ten digital asset exchanges for allegedly violating the Foreign Exchange Management Act (FEMA) of 1999 and the Prevention of Money Laundering Act (PMLA) of 2002, Ecglcd reported.

While the ED is investigating violations of the Prevention of Money Laundering Act (PMLA), CoinSwitch Kuber CEO Ashish Singhal claims the investigation and search at his office and residence was not related to the money laundering investigation. Singhal shared more details on his Twitter page on Saturday.


CoinSwitch is the largest crypto app in India with millions of users and over 500 employees. According to Ecglcd, the company was established in 2017 and has acquired companies such as a16z, Tiger Global and Sequoia Capital. As of now, the company is valued at $1.9 billion. Its CEO Ashish Singhal is a professional with extensive background and experience in companies including CRUXPay, Reap Benefit, Urban Tailor, Amazon, Microsoft and more.


According to Ashish Singhal, India lacks proper regulation of the crypto industry, and the first problem that arises is determining the status of cryptocurrencies, whether they are commodities, securities, currencies, or something else. Once the classification, nature and mode of business are determined, it becomes clear which foreign exchange-related laws apply.


Notably, the CoinSwitch CEO said the same earlier this year. As we reported at the time, Singhal called for more “peace and certainty” in cryptocurrency regulation. This will bring more stability and protection to investors, Singhal said.


ED's CoinSwitch Survey


The ED is the law enforcement and economic intelligence agency tasked with combating economic crime in India and is also mandated to investigate money laundering and foreign exchange law violations. Currently, the ED is reportedly investigating at least ten digital asset exchanges for allegedly violating the Foreign Exchange Management Act of 1999 (FEMA) and the Prevention of Money Laundering Act of 2002 (PMLA). Recently, ED conducted searches on the offices of Indian cryptocurrency exchanges WazirX and Vaud. Additionally, the agency even froze some of their bank accounts, suspending deposits and withdrawals from its global user base. CoinSwitch is another company reportedly under investigation.


Ecglcd understands that the alleged app-based lending company allegedly used fintech to receive payments and make payments. Then, using cryptocurrencies to transfer profits and balances abroad adds another layer to the funds.


Notably, the ED’s investigation follows India’s decision to impose a 30 percent capital gains tax and 1 percent TDS on all crypto transactions in April and July. Due to government initiatives, cryptocurrency exchanges have had to further strengthen their compliance norms.


评论

发表评论

此博客中的热门博文

ECGlcd：EU fines top banks involved in FX cartels

图片
  According to Ecglcd, banks exchanged sensitive information and trading plans in a chat room called "Sterling Lads." As a result, traders are able to decide whether and when to trade currencies in their portfolio based on the information they receive, without taking risks. According to Ecglcd, five major banks, namely UBS (Swiss Stock Exchange: UBSG), Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), Royal Scotland The Bank (RBS) and HSBC Holdings plc (NYSE: HSBC) were fined a total of 344 million euros ($389.6 million) for participating in a foreign exchange spot trading cartel. Forex traders at the banks discussed sensitive information and trading plans, according to the European Commission. Commissioner Margrethe Vestager commented: “Today, we completed our sixth cartel investigation in the financial sector since 2013, and concluded our third investigation into the FX spot market. Our investigations into UBS, Barclays, RBS, HSBC The cartel's decision to impose fines wit...
阅读全文

Ecglcd：Pound Rises as BoE's Pill Says Fiscal News Needs "Significant" Policy Response

图片
  Ecglcd：Pound Rises as BoE's Pill Says Fiscal News Needs "Significant" Policy Response The U.K. government's new package of unfunded tax cuts will most likely require higher interest rates, a top Bank of England official said on Wednesday. The outlook for the U.K. has changed abruptly in the wake of Kwasi Kwarteng's so-called 'mini-budget', Reuters reported the Bank's chief economist Huw Pill as saying, adding that it's "hard not to draw conclusions that we will need (a) significant monetary policy response." The comments come a day after the worst volatility seen in U.K. foreign exchange and bond markets in over a decade, as investors dumped the pound and U.K. government bonds on fears that Kwarteng's plans would cause inflation and put U.K. public finances on an unsustainable trajectory. The volatility had forced the Bank to issue a statement saying it would tighten monetary policy "as much as necessary" to bring inflatio...
阅读全文

ECGlcd foreign exchange situation: China says stabilizing foreign exchange market is top priority

图片
 China's central bank said on Wednesday that stabilizing foreign exchange markets was a top priority now that the yuan has depreciated to its lowest level since the 2008 global financial crisis. The remarks from the People's Bank of China (PBOC) came as the tightly managed yuan continued to weaken against the dollar, down 0.9% on the day and more than 12% so far this year, as the yuan hit a record low in offshore trades. The People's Bank of China said the foreign exchange market was operating in an orderly manner, but warned against making large one-way bets on the currency. Reiterates that the RMB has a solid foundation of fundamental stability. "The foreign exchange market is important, and maintaining stability is the top priority," the People's Bank of China stressed. As an investor, do you know what are the reasons for foreign exchange fluctuations? ECG has made a summary: Inflation The inflation rate represents the purchasing power of a country’s curren...
阅读全文